Chinese kimchi producers ramp up output as overseas demand soars

As kimchi becomes more expensive in overseas markets due to local supply shortages this autumn, Chinese producers are well-positioned to capitalize on the situation.

Known for their high-quality and competitively priced products, Chinese kimchi has gained considerable popularity among overseas consumers, especially in South Korea. More than half of the South Korea's kimchi sourced from Qingdao City of east China's Shandong Province, with the county-level city Pingdu in Qingdao as a critical export hub.

To accommodate the surge in orders, processing facilities in Pingdu are ramping up operations. One company reports that its automated production lines are operating at full capacity, generating over 100 tons of kimchi daily, with more than 80 percent of that output earmarked for international markets.

"Since September, we have seen an explosive growth in orders. Orders from countries like South Korea, Thailand, and Singapore have surged, with South Korean orders making up 70 percent of our total volume. And export prices have risen compared to last year," said Li Ping, sales director of the food company.

The recent surge in kimchi prices can be attributed to a decrease in cabbage production, prompting Chinese companies to enhance their processing capabilities to fulfill the growing demand.

"This year, the supply of cabbage has been severely impacted by weather conditions, leading to difficulties in harvesting cabbage in many areas and challenges in planting winter storage cabbage, which has significantly reduced cabbage availability. Additionally, kimchi made from autumn and winter cabbage tends to be crunchier and sweeter. Taking all these factors into account, both kimchi prices and order volumes have increased compared to previous years," Li explained.

Currently, Qingdao is home to over 20 substantial kimchi processing enterprises. In the first eight months of this year, the city exported 173,000 tons of kimchi, marking an over 12 percent increase year on year. Expectations are high that this year's exports to South Korea will reach 300,000 tons.

Chinese kimchi producers ramp up output as overseas demand soars

The head of leading global mining and metals group Rio Tinto says the firm is looking to embrace the rapid technological changes taking place across the industry by refining its strategic approach and stepping up investments in key areas such as artificial intelligence.

Simon Trott, Rio Tinto's CEO, was speaking in an interview with the China Global Television Network (CGTN) in Beijing, where he said the company must look to identify key investment priorities that offer a competitive advantage and deliver the greatest business impact.

"It comes down to prioritization, because if you try and do everything, you get nothing done. And so you've got to focus on the ones where you think you've got real competitive advantage, or that you can translate into competitive advantage, but also one that's going to move the needle for your business," he said.

Trott explained that as part of Rio Tinto's strategy reset, the company is concentrating on areas where it can make a material difference.

He said the firm is focusing its digital efforts on a select number of data-rich projects rather than spreading its resources too thin.

"So on digital, for example, rather than doing many different projects, [we are] choosing one or two projects where we really have significant amounts of data in that space, for example, in geotech or some of our all-body knowledge work. We've got significant amounts of data. We've got tools now that actually can access that data in a different way and [we're] really putting resources to try and make progress in that area, rather than spreading it too broadly," he said.

Multinational mining company prioritizing digitalization, AI to gain competitive edge